Santos runs amongst the bulls at PNG LNG

A THIRD and possibly fourth train at PNG LNG is closer to an inevitability than a possibility, especially if drilling at the Hides fields meets expectations according to Santos chief David Knox.
Santos runs amongst the bulls at PNG LNG Santos runs amongst the bulls at PNG LNG Santos runs amongst the bulls at PNG LNG Santos runs amongst the bulls at PNG LNG Santos runs amongst the bulls at PNG LNG

Speaking at a media briefing at the APPEA 2012 conference, Knox added to recent momentum for third and fourth trains at the project.

"I think what's happening is making train three more likely," he said.

"We've always said it was more than possible, and I think it's now becoming more than probable. I think the recent discovery was important as a de-risker."

Recent success at the P'nyang South field has changed the investment case for the project.

More figures are yet to be calculated but data so far indicates this future PNG LNG field has a potential vertical gas column of more than 650m.

The goal of proving up at least 2 trillion cubic feet of gas in the field has been satisfied but there is speculation it could be closer to 3Tcf.

Those figures could be complemented by drilling at the massive Hides field, which according to Knox would be hoping to hit water.

"The other thing that's going to be very important is the drilling of the Hides gas wells. As we drill these wells these fields tend to get bigger. It's already a giant field, so I think there is a good prospect we will have a train three," he said.

"We've never drilled to the water contact at Hides. Strangely enough, it seems a bit odd, but we need to understand what the water pressure is in order to understand what contact is.

"Once we'll understand that we'll have a better understanding of the volumes at Hides.

"The water contact doesn't need to be far below us for train three to become a real probability."

Courtesy of sister publication EnergyNewsPremium.net.

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